Sign Credit Facility Agreement

7th October 2021

Sign Credit Facility Agreement

posted in Uncategorized |

The new credit facility replaces the current EUR 100 million revolving credit agreement granted by Nordea and Svenska Handelsbanken AB (publ), Branch Operation in Finland, as lender. The credit facility agreement deals with laws that may arise under certain credit conditions, for example. B when a business is late or requests the termination of a loan. The section describes the penalties the borrower faces in the event of default and the measures taken by the borrower to remedy the default. A choice clause refers to certain laws or jurisdictions consulted in the event of a future dispute. Suominen has entered into a syndicated revolving credit facility, in a currency of more than €100 million, with a three-year term and two one-year extension options. The lenders of the facility are Danske Bank A/S, Finland Branch and Nordea. The new credit facility includes leverage ratio and gearing as financial covenants. Institutional credit operations also include revolving and non-revolving credit options. However, they are much more complicated than retail contracts. They may also include the issuance of bonds or a credit consortium in which several lenders invest in a structured credit product.

Since the Scandinavian governments` announcements regarding loan guarantees to airlines, SAS has cooperated with four Nordic banks and relevant government authorities to clarify the criteria and conditions of the guarantees. The guaranteed debt package approved by the European Commission has been implemented in the context of the covid 19 crisis and aims to support the airline`s liquidity and prepare for the resumption of its activities. A promised facility is a source of short- or long-term financing agreements in which the creditor undertakes to grant a loan to a company, provided that it meets specific requirements defined by the lending institution. Funds shall be made available within a ceiling for a specified period and at an agreed interest rate. .

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